Franchises of

Citybus Limited (Franchise for Airport and North Lantau Bus Network),
Long Win Bus Company Limited and New World First Bus Services Limited

PURPOSE

The Government plans to engage Citybus Limited (Franchise for the

Airport and North Lantau bus network) (“Citybus (Franchise 2)”), Long Win Bus
Company Limited (“LW”) and New World First Bus Services Limited (“NWFB”)
for discussion on the granting of new ten-year franchises upon expiry of the current
ones. Members of the public are welcome to offer views on the requirements of the
new franchises.

BACKGROUND

2. At present, there are five franchised bus companies operating six bus
franchises 1 in Hong Kong. The current franchises of Citybus (Franchise 2) and LW
commenced on 1 May 2013 and will expire on 1 May 2023. NWFB’s current
franchise commenced on 1 July 2013 and will expire on 1 July 2023. The three
franchisees have indicated interests to apply for new ten-year franchises and for
them to take effect immediately upon expiry of the current ones.

3. Under section 5 of the Public Bus Services Ordinance (“the

Ordinance”) (Cap. 230), the Chief Executive in Council may grant to a company a
franchise conferring the right to operate a public bus service. Under section 6 of
the Ordinance, a franchise may be granted for a period not exceeding ten years 2.
Section 12 of the Ordinance prescribes that a franchisee is required to maintain a
proper and efficient public bus service to the satisfaction of the Commissioner for
Transport at all times during the franchise period.

4. According to the established practice, an incumbent operator which

is able to prove its ability to provide a proper and efficient service, and is willing to
further invest in franchised bus operation may be considered for being granted a
new franchise for a period of ten years. As franchised bus operation is capital and
investment intensive, a longer franchise period (say, ten years) would facilitate a
franchisee’s long-term planning and service development. These include –

1
The five franchised bus companies are The Kowloon Motor Bus Company (1933) Limited, Citybus
Limited, NWFB, LW and New Lantao Bus Company (1973) Limited. Citybus Limited is operating two
franchises, one for the Hong Kong Island and cross-harbour bus network and the other for the Airport
and North Lantau bus network.

2
The Ordinance also provides that the Chief Executive in Council may extend an existing franchise for
a further period not exceeding two years as a buffer. Meanwhile, a franchisee may request and the Chief
Executive in Council may extend an existing franchise for a further period not exceeding five years.

1
 (a) operating certain loss-making but socially desirable routes on broader
considerations over the long term;

(b) securing more favourable terms on financing to reduce operating

costs and hence pressure to increase fare;

(c) being more resilient to business risks brought about by short-term

market volatility; and

(d) providing a more stable working environment for its staff as bus
industry is also labour intensive.

The aforesaid factors are conducive to ensuring the provision of a proper and
efficient public bus service to passengers.

5. To evaluate whether a franchisee is providing a proper and efficient

service, the Transport Department (“TD”) has all along been reviewing the
franchisee’s performance regularly through passenger satisfaction surveys, site
surveys, vehicle inspections, examination of regular returns and feedback from the
public, etc. A summary of the assessment on the performance of Citybus
(Franchise 2), LW and NWFB is set out in paragraphs 6 to 23 below.

ASSESSMENT

(A) Service Performance and Operational Efficiency

Citybus (Franchise 2)

6. As at end 2020, Citybus (Franchise 2) was operating 30 bus routes.

The average daily patronage of Citybus (Franchise 2) increased from about
71 100 passenger journeys in 2013 (commencement of its existing franchise) to
about 105 200 passenger journeys in 2019 3 (an increase of about 48%). The growth
in passenger demand was mainly attributable to the continuous growth in passenger
demand to and from the airport (with the introduction of eight new airbus routes
since 2015) and Tung Chung as well as the commissioning of the Hong Kong Port
of Hong Kong-Zhuhai-Macao Bridge (“HZMB”) in 2018. In tandem with the
increase in patronage, the fleet size of Citybus (Franchise 2) increased by about
38%, from 175 to 241 buses during the same period3.

3
In 2020, the average daily patronage of Citybus (Franchise 2) decreased to about 56 800 and the fleet
size was 223 as at end of the year. The significant drop in service demand was due to the impact of the
COVID-19 pandemic and corresponding social distancing and boundary control measures and therefore
did not reflect the normal situation.

2
7. Under the Ordinance, a franchisee has to submit its five-year Forward
Planning Programme (“FPP”) on an annual basis. FPP includes proposals for
service improvement and rationalisation, as well as vehicle purchase and
replacement programme. Since 2013, Citybus (Franchise 2) has implemented 51
service improvement items 4 and 20 service rationalisation items 5 to enhance its
service and network efficiency. According to its latest FPP (covering the period
from 2020 to 2025), Citybus (Franchise 2) plans to add a total of 60 new buses
(amounting to about 27% of its bus fleet in 2020) mainly to further improve its
services and facilitate new route development.

8. The annual average lost trip rate 6 of Citybus (Franchise 2) was 1.2%
between 2013 and 2019. Its lost trip rate rose to 2.2% in the first half of 2020 in
the face of a significant drop in patronage of franchised bus services, particularly
during the early stage of the COVID-19 outbreak. With the sharp and abrupt
decreases in patronage, Citybus (Franchise 2) adjusted its services accordingly, and
the lost trip rate was generally higher during non-peak hours. TD had then taken
immediate actions to ask Citybus (Franchise 2) to rectify the situation, and its lost
trip rate gradually improved to about 1.9% in the second half of 2020. In the first
four months of 2021, the situation had further improved and the lost trip rate was
0.2%.

9. Between 2013 and 2020, the annual average number of complaints

lodged against Citybus (Franchise 2) per million passengers received by the
Transport Complaints Unit (“TCU”) under the Transport Advisory Committee was
7.03. During the same period, the average number of Citybus (Franchise 2) buses
involved in accidents per million vehicle-kilometre was 1.90, lower than the overall
industry average of 3.24 during the same period.

4
Service improvement items mainly include introduction of new routes, frequency enhancement and
extension of service hours.
5
Service rationalisation items mainly include route cancellation, frequency reduction, route truncation
and re-routeing.
6
This refers to the percentage of trips not meeting the number as agreed with TD over the total number
of trips.

3
LW

10. As at end 2020, LW was operating 38 bus routes. The average daily
patronage of LW increased from about 90 900 passenger journeys in 2013
(commencement of its existing franchise) to 125 500 passenger journeys in 2019 7
(an increase of about 38%). The growth in passenger demand was mainly driven
by continuous developments on the Airport Island, population increase in LW’s
catchment areas in the New Territories (including Tung Chung) and the
commissioning of the Hong Kong Port of HZMB in 2018. In tandem with the
increase in patronage, the fleet size of LW increased by about 62%, from 172 to 279
during the same period7.

11. Since 2013, LW has implemented 107 service improvement and

18 service rationalisation items to enhance its service and network efficiency.
According to its latest FPP (covering the period from 2020 to 2025), LW plans to
purchase a total of 199 new buses (amounting to about 84% of its bus fleet in 2020)
to renew its fleet and further improve its services.

12. The annual average lost trip rate of LW was 1.2% between 2013 and
2019. Similar to Citybus (Franchise 2), its lost trip rate rose significantly in the first
half of 2020, reaching about 8.2%, in the face of a significant drop in patronage of
franchised bus services, particularly during the early stage of the COVID-19
outbreak. With the sharp and abrupt decreases in patronage, LW adjusted its
services accordingly, and the lost trip rate was generally higher during non-peak
hours. TD had then taken immediate actions to ask LW to rectify the situation, and
its lost trip rate gradually improved to about 1.0% in the second half of 2020. In
the first four months of 2021, the lost trip rate had maintained at 1.0%.

13. Between 2013 and 2020, the annual average number of complaints
lodged against LW per million passengers received by the TCU was 6.46. During
the same period, the average number of LW buses involved in accidents per million
vehicle-kilometre was 1.32 per annum, lower than the overall industry average of
3.24 during the same period.

7
In 2020, the average daily patronage of LW decreased to about 76 900 and the fleet size was 238 as at
end of the year. The significant drop in service demand was due to the impact of the COVID-19
pandemic and corresponding social distancing and boundary control measures and therefore did not
reflect the normal situation.

4
NWFB

14. As at end 2020, NWFB was operating 94 bus routes. The average
daily patronage of NWFB decreased from about 499 000 passenger journeys in
2013 (commencement of its existing franchise) to 458 000 passenger journeys in
2019 8 (a decrease of about 8.2%), following the full commissioning of the West
Island Line and South Island Line (East) in 2014 and 2016 respectively. In tandem
with the decrease in patronage, the fleet size of NWFB reduced by about 4%, from
715 to 685 during the same period8.

15. Since 2013, NWFB has implemented 110 service improvement and
163 service rationalisation items to enhance its service and network efficiency.
According to its latest FPP (covering the period from 2020 to 2025), NWFB plans
to purchase a total of 62 buses (amounting to about 9% of its bus fleet in 2020) to
replace its old buses and further improve its services.

16. The annual average lost trip rate of NWFB was 2.5% between 2013
and 2019. Similar to Citybus (Franchise 2) and LW, its lost trip rate rose
significantly to about 11.1% in the first half of 2020 in the face of a significant drop
in patronage of franchised bus services, particularly during the early stage of the
COVID-19 outbreak. With the sharp and abrupt decreases in patronage, NWFB
adjusted its services accordingly, and the lost trip rate was generally higher during
non-peak hours and late nights. TD had then taken immediate actions to ask NWFB
to rectify the situation, and its lost trip rate gradually improved to about 2.3% in the
second half of 2020. In the first four months of 2021, the situation had further
improved and the lost trip rate was 1.8%.

17. Between 2013 and 2020, the annual average number of complaints
lodged against NWFB per million passengers received by the TCU was 3.75.
During the same period, the average number of NWFB buses involved in accidents
per million vehicle-kilometre was 5.95 per annum, higher than the overall industry
average of 3.24 during the same period. The number of NWFB buses involved in
accidents per million vehicle-km per annum was relatively higher since the majority
of its bus routes were operating in urban areas, which were more congested and
vulnerable to traffic accidents.

8
In 2020, the average daily patronage of NWFB decreased to about 347 800 and the fleet size was 690
as at end of the year. The significant drop in service demand was due to the impact of the COVID-19
pandemic and corresponding social distancing measures and therefore did not reflect the normal
situation.

5
(B) Safety and Service Enhancement Measures

18. Citybus (Franchise 2), LW and NWFB have been taking measures to
further enhance safety during the current franchise period. For example, –

(a) New institutional setup for bus safety - Since 2019, the three
franchisees have appointed their own Safety Directors to oversee
franchised bus safety matters, enhance communications with
overseas bus operators in well-respected overseas jurisdictions and
implement safety measures;

(b) Installation of in-vehicle safety devices - With a view to enhancing

bus safety, all new double-deck buses procured by the three
franchisees from July 2018 onwards are equipped with seat belt on
all passenger seats, electronic stability control (“ESC”) which can
improve vehicle stability and reduce the risk of rollover, as well as
speed limiting retarder (i.e. speed limiter with slow-down function).
In particular, to speed up the provision of seat belts on passenger seats
for buses operating long-haul routes on expressways, LW purchased
146 new buses equipped with seat belts on all passenger seats and
other safety devices in 2019 for replacing the same number of buses.
Besides, the three franchisees have started to retrofit suitable existing
buses with the above devices since the third quarter of 2020. The
target is to complete the installation of seat belts for seats on the upper
decks of 132, 116 and 276 existing double-deck buses of Citybus
(Franchise 2), LW and NWFB respectively in three years (from the
third quarter of 2020) 9. Besides, ESC and speed limiting retarder will
be installed on 216, 189 and 486 existing double-deck buses of
Citybus (Franchise 2), LW and NWFB respectively in four years
(from the third quarter of 2020) 10. Moreover, Citybus (Franchise 2)
and LW have installed the advanced driver assistance systems,
including anti-collision and lane keeping warning systems, as well as
driver monitoring system on all buses running the airport/North
Lantau routes;

(c) Route risk assessment - The three franchisees completed route risk
assessment on all of their bus routes in 2020, which assessed the
actual road conditions and environment, activities of other road users,
etc., so as to provide appropriate and sufficient driving tips and
guidance to bus captains on the specific driving environment on a
route-by-route basis. The objective was to ensure that bus captains

9
Upon completion of the installation and taking into account the newly procured buses, the majority of
double-deck buses of Citybus (Franchise 2), LW and NWFB registered in or after 2016 would be fitted
with seat belts on the upper deck.
10
Upon completion of the installation and taking into account the newly procured buses, about 96.9%,
79.4% and 70.4% of the respective bus fleets of Citybus (Franchise 2), LW and NWFB would be
equipped with ESC and speed limiting retarder.

6
 would deliver safe bus services to the passengers and would not
impose hazard to other road users;

(d) Safety performance management - From 2020 onwards, the three

franchisees have been compiling data in respect of a new set of
19 safety performance indicators required by TD to review their
safety performances, including general safety issues, bus passenger
safety, bus operation and network safety, bus engineering safety,
safety of bus captains at work and safety management and assurance
systems. Moreover, they have implemented since 2020 a set of
tightened common thresholds for generating real-time alerts and
exception reports on speeding and harsh deceleration of bus captains
for better monitoring of the driving performance of bus captains; and

(e) Enhancing working conditions and environment - The three

franchisees fully implemented the latest Guidelines on Bus Captain
Working Hours, Rest Times and Meal Breaks promulgated by TD in
February 2018, with working hours and driving hours reduced and
rest time increased to improve the working conditions for bus
captains. Besides, rest facilities for bus captains were enhanced to
improve their working environment. For example, new resting
facilities were provided at the Hong Kong Port of HZMB by Citybus
(Franchise 2), Pok Hong Bus Terminus by LW, and Chai Wan Depot
by NWFB.

19. To further enhance service standards, Citybus (Franchise 2), LW and

NWFB have implemented a number of measures for continuous improvement on
service quality during the current franchise period. For example, –

(a) provision of estimated time of arrival information of the next bus for
all regular bus routes through mobile phone application and website;

(b) provision of instant passenger information of affected bus services

through mobile phone application and website;

(c) provision of dynamic display panels inside bus compartments for

displaying route and next stop information and passenger safety
information 11;

11
Except four electric buses of LW which are on trial.

7
 (d) provision of free Wi-Fi service on 156 Citybus (Franchise 2), 237 LW
and 87 NWFB buses 12 and USB charging ports on 28 Citybus
(Franchise 2), 106 LW and seven NWFB buses 13;

(e) promotion of the concept of “Transport for All” by the provision of

wheelchair-accessible low-floor buses in their entire fleets, as
compared with only 73% of their buses being wheelchair-accessible
low-floor buses in 2013;

(f) provision of double wheelchair parking spaces by Citybus

(Franchise 2) on ten routes (involving 16 buses) and by NWFB on
one hospital route (involving 13 buses);

(g) provision of customer services centres 14 with more customised

services for their passengers, e.g. enquiry service, Octopus Card add-
value service, sale of tickets and souvenirs, etc.;

(h) provision of passenger seats by Citybus (Franchise 2), LW and

NWFB at 18, 20 and 108 sheltered bus stops respectively under the
Government's subsidy scheme 15;

(i) provision of estimated time of arrival information display panels by

Citybus (Franchise 2), LW and NWFB at five, 11 and 42 sheltered
stops with electricity supply respectively under the Government's
subsidy scheme 16; and

(j) introduction of electronic payment systems by LW supporting QR

code payment and contactless payment on its entire fleet, and QR
code payment system by Citybus (Franchise 2) and NWFB on their
entire fleets.

20. Furthermore, Citybus (Franchise 2), LW and NWFB have been

offering a number of bus-bus interchange (“BBI”) schemes with fare concessions.
As at end 2020, Citybus (Franchise 2), LW and NWFB provided 69, 38 and 136
BBI schemes respectively, either on their own or jointly with other companies. The
three franchisees also offered fare concessions for children and elderly on all routes.

12
Amounting to about 70%, 99.6% and 12.6% of respective bus fleets of Citybus (Franchise 2), LW and
NWFB.
13
Amounting to about 12.6%, 44.5% and 1.0% of respective bus fleets of Citybus (Franchise 2), LW and
NWFB.
14
Citybus (Franchise 2) and LW each operates one customer service centre at Airport Ground
Transportation Centre, while NWFB operates one customer service centre at Admiralty.

15
The scheme on provision of passenger seats are fully subsidised by the Government.

16
The scheme on provision of display panels are subsidised by the Government on matching basis.

8
(C) Public Opinion on Bus Services

21. TD and the franchised bus operators conduct regular passenger

satisfaction surveys to gauge passengers’ opinions on their bus service. The
findings of the passenger satisfaction surveys are used as the basis for TD and each
operator to monitor service performance, keep track of passenger satisfaction and
identify areas for improvements.

22. Further, given the current franchises of Citybus (Franchise 2), LW

and NWFB will soon expire, TD commissioned an independent survey from March
to April 2021 to collect passengers’ overall opinions on their bus services. The
results show that 94.4%, 92.4% and 90.4% of the respondents were satisfied with
the overall quality of services provided by Citybus (Franchise 2), LW and NWFB
respectively. Survey findings are summarised at Annex A.

(D) Financial Performance

23. According to the franchise requirements, all franchisees have to

publish a booklet of “Fuller Disclosure” annually to present their operational and
financial information over the past year. Information on the financial performance
of Citybus (Franchise 2), LW and NWFB during their current franchise period is at
Annex B.

NEW FRANCHISES

24. Based on the assessment in paragraphs 6 to 23 above, the

Commissioner for Transport is of the view that Citybus (Franchise 2), LW and
NWFB have been providing a proper and efficient bus services and are willing to
continue to invest for further enhancement of the bus service. Meanwhile, the three
franchisees have indicated an interest to apply for new ten-year franchises. Taking
the above into account, the Government plans to commence the discussion with
Citybus (Franchise 2), LW and NWFB for new ten-year franchises so that they can
continue to operate their existing bus networks and provide the essential public bus
service. The new franchises will take effect immediately upon expiry of the current
ones in 2023.

25. Although the three franchisees have indicated an interest to continue

to provide franchised bus service, the operating environment of the bus industry in
the foreseeable future will continue to be rather difficult owing to the competition
from other public transport modes and rising operating costs. Subject to the
improving COVID-19 situation and consequential adjustment to the boundary
control measures, Citybus (Franchise 2) and LW, which are operating the North
Lantau and airport networks, should have generally better prospects, given that the
most profitable routes are usually those long-haul routes serving the airport.

9
Meanwhile, NWFB has a less optimistic outlook because of the limited prospect
for network expansion and revenue growth on Hong Kong Island, which is its major
operating base. There is room for improvement in the efficiency of the bus
networks in the area where there is duplication of routes operated by NWFB and
the Citybus (Franchise for Hong Kong Island and cross-harbour bus network)
(“Citybus (Franchise 1)”) as a result of the legacy of bus network development over
the years. There are also further rationalisation opportunities with the West Island
Line and South Island Line (East) already in operation. In this connection, we note
that there have been different suggestions on how bus services can better meet
passenger demand and travelling pattern on Hong Kong Island while improving the
operational efficiency and long-term viability of the bus networks of the two
franchises including network re-engineering and route re-organisation, merging of
the two franchises etc. We will continue to listen to views on this matter and work
with NWFB and Citybus (Franchise 1) to explore options for their future
development.

26. In the grant of new franchises, the Government would endeavour to

further enhance the quality of bus service (e.g. upgrading ancillary facilities and
passenger waiting environment) as well as bus safety (e.g. installing in-vehicle
safety enhancement facilities and strengthening bus captain training), improve
environmental performance (e.g. procuring electric buses or other environmentally
friendly buses) and implement reasonable fare concessions (e.g. introducing more
BBI schemes across franchisees). Upon concluding the discussion with Citybus
(Franchise 2), LW and NWFB by mid-2022, we will brief this Panel on the outcome
of the discussion and the new franchise clauses and commitments.

PUBLIC CONSULTATION

27. We welcome views from members of the public on the requirements

of the new franchises for the bus networks of Citybus (Franchise 2), LW and
NWFB. Such views can be submitted to TD in writing on or before 10 September
2021:

By online form﹕ Website of TD

(https://www.td.gov.hk/en/buspc/index.html)

By mail： Bus and Railway Branch

Transport Department
16/F, South Tower
West Kowloon Government Offices
11 Hoi Ting Road, Yau Ma Tei, Kowloon

By fax： 2802 2679

By email： bus-franchise@td.gov.hk

10
Please mark "Requirements on Bus Franchises" on the envelope or in the
submission if the views are provided by mail or fax.

28. Any person/organisation making a submission may provide personal

data on a voluntary basis. Such personal data will only be used for this consultation
exercise. Unless otherwise specified, the name of the person/organisation making
the submission as well as the views so provided may be made available to the public
after the consultation period.

Transport and Housing Bureau

Transport Department
June 2021

11
 Annex A

Passenger Opinion Survey for the

New World First Bus Services Limited,
Long Win Bus Company Limited and
Citybus Limited (Franchise for Airport and
North Lantau Bus Network)
- Executive Summary -

Prepared for
Transport Department

By
Consumer Search Hong Kong Limited (CSG)

May 2021

CSG is accredited with ISO 9001:2008 certification from 2003 to 2017 and ISO
20252:2012 certification since 2017. All research projects are conducted in accordance
with the provisions of the ICC/ESOMAR International Code of Marketing and Social
Research Practice.
Room 501-506, 5/F., Island Place Tower, 510 King’s Rd., Hong Kong Tel: 852 2891 6687
Fax: 852 2833 6771 Email: general@csg-worldwide.com http://www.csg-worldwide.com/
Passenger Opinion Survey for NWFB, LW and CTB(F2) – Executive Summary

1. INTRODUCTION
1.1 Survey Objectives

In order to collect views on the performance of the New World First Bus Services
Limited (“NWFB”), Long Win Bus Company Limited (“LW”) and Citybus Limited
(Franchise for Airport and North Lantau bus network) (“CTB(F2)”) as perceived
by passengers, the Transport Department has commissioned the Consumer
Search Hong Kong Limited (CSG) to conduct Passenger Opinion Surveys for
the three franchised bus companies (“the Survey”).

1.2 The Survey

The survey methodology for each of the three franchised bus companies was
as below:

1.2.1 Survey for the Opinion on NWFB

1.2.1.1. The Survey for the opinion on NWFB covered regular passengers aged 12 or
above who take NWFB at least once a week. The required information was
collected through telephone interviews with land-based households in Hong
Kong installed with residential telephone lines and through telephone
interviews with mobile phone users.

1.2.1.2. Dual sampling frames of residential telephone lines and mobile telephone
numbers were used for selecting a representative sample of respondents.
 The residential telephone numbers were randomly drawn from the CSG
Residential Telephone Database. One member in each selected
household who fulfilled the respondent definition was selected by the “Last
Birthday” method and interviewed.

 The mobile telephone numbers were generated from random digit dialling
method. Individuals who fulfilled the respondent definition were
interviewed.

1.2.1.3. The target number of 500 completed interviews was achieved in the fieldwork
period between 30 March and 26 April 2021, with the response rate at 68.2%.

1.2.2 Survey for the Opinion on LW and CTB(F2)

1.2.2.1. The surveys for the opinion on LW and CTB(F2) covered passengers aged 12
or above who take LW and CTB(F2) respectively.

2
Passenger Opinion Survey for NWFB, LW and CTB(F2) – Executive Summary

1.2.2.2. For both surveys, the required information were collected through face-to-
face interviews on board of the target routes of the respective bus company.

1.2.2.3. For both surveys, the passengers on board were sampled at two stages, viz.
sampling of trips and sampling of passengers on selected trips.
 Allocation of samples to each bus route was approximately proportional to
ridership of each route in 2020.
 The number of trips sampled on both bounds was about the same.
 Passengers aged 12 or above travelling on the specified bus journeys
were randomly selected on board with reference to the seating position
and interviewed.

1.2.2.4. The target number of 500 completed interviews for each bus company was
achieved in the fieldwork period between 30 March and 26 April 2021, with
the response rate at 94.9% for LW and 88.7% for CTB(F2).

1.3 Questionnaire

1.3.1 The questionnaires included eight core questions covering the following
aspects of the service performance:
(i) Overall quality of services
(ii) Comfort of buses
(iii) Facilities on buses
(iv) Passenger information
(v) Reliability of bus services
(vi) Driving performance of bus drivers
(vii) Service attitude of bus drivers or staff
(viii) Performance of on environmental protection

1.3.2 The respondents were asked to rate their satisfaction level on the overall
service and each service aspect on a four-point scale of (i) very satisfied (ii)
satisfied (iii) dissatisfied (iv) very dissatisfied.

2. SURVEY FINDINGS
2.1 The majority of respondents were satisfied with the overall quality of services
provided by the three bus companies, with the percentages of “very satisfied”
or “satisfied” at 90.4% for NWFB, 92.4% for LW and 94.4% for CTB(F2). Only
less than one in ten respondents expressed dissatisfaction (“very dissatisfied”
or “dissatisfied”) on this aspect (9.2% for NWFB, 7.4% for LW and 5.6% for
CTB(F2)).

3
Passenger Opinion Survey for NWFB, LW and CTB(F2) – Executive Summary

2.2 Over nine in ten respondents were satisfied with the comfort of buses, with the
percentages of “very satisfied” or “satisfied” at 91.8% for NWFB, 91.4% for LW
and 96.2% for CTB(F2). The level of dissatisfaction (“very dissatisfied” or
“dissatisfied”) was low at 6.8% for NWFB, 8.6% for LW and 3.8% for CTB(F2).

2.3 Over nine in ten respondents were satisfied with the facilities on the bus, with
the percentages of “very satisfied” or “satisfied” at 94.4% for NWFB, 96.4% for
LW and 96.6% for CTB(F2). The level of dissatisfaction (“very dissatisfied” or
“dissatisfied”) was low at 4.4% for NWFB, 3.2% for LW and 3.0% for CTB(F2).

2.4 The majority of respondents were satisfied with the passenger information
provided, with the level of “very satisfied” or “satisfied” was lower at 84.4% for
NWFB, 92.2% for LW and 88.0% for CTB(F2). The level of dissatisfaction
(“very dissatisfied” or “dissatisfied”) was 11.4% for NWFB, 6.2% for LW and
11.6% for CTB(F2).

2.5 The satisfaction levels of the reliability of bus services for the three bus
companies were also lower compared to other aspects of bus services. The
satisfaction level (“very satisfied” or “satisfied”) was 75.8% for NWFB, 82.2%
for LW and 78.0% for CTB(F2). About two in ten respondents were
dissatisfied with this aspect, with the dissatisfaction levels (“very dissatisfied”
or “dissatisfied”) at 22.6% for NWFB, 17.4% for LW and 21.8% for CTB(F2).

2.6 About nine in ten respondents were satisfied with the driving performance of
the bus drivers, with the percentages of “very satisfied” or “satisfied” at 89.8%
for NWFB, 96.0% for LW and 94.8% for CTB(F2). Less than one in ten
respondents were dissatisfied with this aspect, with the dissatisfaction level
(“very dissatisfied” or “dissatisfied”) at 9.4% for NWFB, 3.4% for LW and 5.0%
for CTB(F2).

2.7 The majority of respondents were satisfied (“very satisfied” or “satisfied”) with
the service attitude of bus drivers or staff of LW (97.0%) and CTB(F2) (93.6%).
NWFB attained a lower satisfaction level on this aspect at 88.0%. The
dissatisfaction levels (“very dissatisfied” or “dissatisfied”) of LW and CTB(F2)
were low at 1.2% and 5.2% respectively. The proportion of dissatisfied
respondents was higher for NWFB at 10.8%.

2.8 Most of the respondents were satisfied (“very satisfied” or “satisfied”) with LW
(83.6%) and CTB(F2) (83.2%) on the performance on environmental protection.
NWFB received a lower satisfaction level on this aspect at 56.8%. The
dissatisfaction levels (“very dissatisfied” or “dissatisfied”) were low at 3.8% for

4
Passenger Opinion Survey for NWFB, LW and CTB(F2) – Executive Summary

LW and 4.8% for CTB(F2). NWFB, again, had a higher dissatisfaction level
at 11.8%. It is noteworthy that the proportion of “no comment” was higher than
that of other aspects, in particularly for NWFB (31.2%), reflecting the lower
awareness of the respondents on this area comparing with other aspects.

5
 Annex B

Financial Performance of
Citybus (Franchise 2), LW and NWFB under the Current Franchise Period

Citybus (Franchise 2)

Accounting Average Daily Total Total Cost Profit after Tax

Year Patronage Revenue ($ million) ($ million)
(Note) (passenger ($ million)
journeys)
2013/14 73 300 460 390 70
2014/15 75 700 473 397 75
2015/16 79 200 510 398 112
2016/17 82 300 537 406 131
2017/18 87 200 563 460 103
2018/19 103 800 680 568 112
2019/20 81 200 548 542 6
Note: The accounting year of Citybus (Franchise 2) ended on 30 June each year.

LW

Accounting Average Daily Total Total Cost Profit after Tax

Year Patronage Revenue ($ million) ($ million)
(Note) (passenger ($ million)
journeys)
2013 90 900 397 358 39
2014 95 400 419 384 35
2015 100 400 447 384 63
2016 101 900 467 441 26
2017 107 100 517 483 34
2018 113 700 565 529 37
2019 125 500 659 599 59
Note: The accounting year of LW ended on 31 December each year.
NWFB

Accounting Average Daily Total Revenue Total Cost Profit after

Year Patronage ($ million) ($ million) Tax
(Note) (passenger ($ million)
journeys)
2013/14 502 000 1,283 1,163 120
2014/15 465 900 1,166 1,146 20
2015/16 459 500 1,197 1,127 70
2016/17 455 000 1,183 1,106 77
2017/18 449 800 1,146 1,151 -5
2018/19 462 600 1,232 1,303 -71
2019/20 398 600 1,300 1,350 -50
Note: The accounting year of NWFB ended on 30 June each year.